'ISIS' (the name) is an entirely western creation, being an abbreviation of Islamic State in Iraq and Syria. You won't be shocked to learn that English isn't actually the terrorist group's first language so they don't refer to themselves as ISIS. The system in-game is named after the Egyptian goddess.
Here's the real issue though. Have FD deliberately used the system for an explosives-related CG because of the connotations the word has now assumed? Yeah probably. They also probably made the mistake of thinking people would see it as a knowing nod to real world events but not one that is in any way disrespectful and so not get their panties in a bunch about it.
TL;DR - grow up.
Except that the group refer to themselves as "the Islamic State in Iraq and Syria," "the Islamic State in Iraq and the Levant," and simply "the Islamic State," in Arabic. We here in the west do not speak Arabic, so we translate the phrases into English. Thus, ISIS, ISIL, and IS are born as references to the terror organization. They are not "entirely western creations," they are the English translations of Arabic words and terms. Just as a Western country's name is not pronounced or abriviated the same way in Arabic as it is in English. There is no great western media conspiracy to defame the of Isis by calling a terror organization what it calls itself. Those who are quick to hop on the goddess bandwagon are often mindlessly regurgitating the unsourced information they saw on a picture with some words on it that floated around Facebook for a while.
The lack of even a fundamental understanding of world events, along with people's willingness to repeat whatever they see on Facebook , never ceases to amaze me.
As for this in-game system: I do not think it is named after the terror group. I do think it is named after the goddess. However, when taking into consideration recent events it is not a far stretch for someone to associate ISIS with the terror organization. There is no need to get on your imaginary moral and intellectual high horse to berate and insult someone who sees a connection. ISIS is on of the most fundamentally evil organizations to ever exist, and the horror of the crimes they commit on a daily basis go beyond words. Someone seeing the mission described above may find it in poor taste, and I don't blame them. Whether those circumstances where PG or intentional is largely irrelevant, though I would hope FD would not be so blind as to think intentionally creating those circumstances was a good idea.
Trust me, I hate PC just as much as the next guy, but jumping down the OPs throat on this is off the mark. If he was on the forums complaining that only having male and female pilot choices in-game is offensive, then yea he needs to suck it up. But being concerned about the possibility of intentionally making light of r***, tourture, and genocide happening right now, every day, is not PC garbage.